No. It is not. Making $100,000 is nothing at all like making minimum wage in any way. There is really absolutely no comparison Minimum wage is $7.25 an hour in this country with some states a bit more. That works out to $15,080 per year if you assume 40 hours a week for 52 weeks. Making less than $300 a week is not the same as $1900 a week.
Here is their monthly expense breakdown
$ 350 a month for utilities- Not unreasonable
$ 300 for car insurance, -Seems high we have $120 a month for 2 cars
$ 175 for Internet, cable and phone. High-Comcast or many other places have triple play deals for $100 or are they including cell phones
$1222 a month on our mortgage Actually not too bad
$ 250 a month extra on the mortgage
$ 300 on a car loan. Hmm they claimed no debt highly recomnmed that they look at Dave Ramsy drive free plan.
$ 500 a month on gasoline higher but they maybe driving alot could look at way to save on gas
$ 800 on retirement way too low they should be saving double to even hit 10% of their income
$1250 for college ($15,000 a year for tuition and books) Kids need to pay for this and for community college it seems very high. $4k annually for community college.
$1000 a month on food. way to high for a family of 4 even with growing boys- I have 3 and we spend $600 the most a month
I am seeing alot of missing categories clothes, vacation entertainment. I don't live in their shoes but their cost of living area is lower than mine and we are making less than they. I don't feel poor.
So what are you thoughts....
5 comments:
I think that people have a poor concept of needs vs. wants and in turn, the more they make, the more they "need" and spend. If someone is making $100k/yr and feeling poor, then they've made poor financial decisions.
$350/mo for utilities is very high, in my opinion. This makes me think that they have a very large house, or are not efficiently using their heating/cooling systems (i.e. programming to set temps & times).
$300/mo for car insurance is high to me too. I can only think that they have newer and more expensive vehicles that cost more to insure.
$175 for Internet/cable/phone - high indeed.
$1472 towards mortgage - seems fair, but I'm not sure how accurate given the cost for utilities...
$300 car loan - average price for a car note
$500 gas - this is very high. Perhaps they have a vehicle that is not fuel efficient and drive more than truly necessary
** so far, I'm thinking this person owns a new BMW or Mercedes SUV
The prices for retirement shouldn't even be included since in most cases, contributions to 401k are pre-tax (so they wouldn't even see the money in their paychecks.)
$1250/mo for community college is high - this is about average though for a state school if you're not living on-campus.
$1000 for food seems high too. I can see being able to "splurge" more if you make more, but that is a large number.
Sorry for the novel - thanks for sharing the information!!
Good points Tiffany they are totally living about their means.
wow, $300 a month for insurance? We pay less than $400 every 6 months for 2 trucks and a motorcycle. I guess if you had payments(which we dont) and had to have full coverage...
the gas is around what we pay, but we have trucks that are at least $80 each to fillup....
I wouldnt know what to do with 100,000 a year. we are a family of 5 and hubby makes 22,000-30,000(he's a mason so it varies) a year.
Car insurance depends on previous driving records and the state you live in and the coverage that you have and how many drivers you have in the house. $400 every six months? Lady, how many drivers? where do you live? what coverage do you have?
It's kinda unfair to judge since we don't have all the information.
I do agree that people forget wants vs. needs.
Live in Pa. Old Toyota and new Mazda = 230 a month in insurance
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